FxWirePro: USD/ZAR heads deeper into bear territory, 23.6%fib fibonacci eyed

• USD/ZAR dipped on Wednesday  as  South African rand firmed as investors braced for a day headlined by the Federal Reserve's decision and an easing of U.S.-China trade tensions.

• U.S. President Donald Trump began the final leg of his Asia tour, sealing a trade deal with South Korea on Wednesday before meeting China’s Xi Jinping later in the week to finalize a broader trade agreement.

• Trump said he expects to cut U.S. tariffs on Chinese goods in return for China’s pledge to curb fentanyl precursor exports.

• After nearly a month-long U.S. government shutdown that halted key economic data, investors will look for clues on the Fed’s rate path, having relied on private surveys and corporate updates in the meantime.

• The Federal Reserve is widely expected to cut interest rates by 25 basis points later today, signaling a cautious shift toward monetary easing to bolster economic growth.

• Immediate resistance is located at 17.263  (SMA20), any close above will push the pair towards 17.393 (38.2%fib).

• Strong support is seen at 17.082 (23.6%fib) and break below could take the pair towards 17.024 (Lower BB).

Recommendation: Good to sell around 17.200 with stop loss of 17.450 and target price of 17.000